President’s Message – August 2023
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Dear Professional Colleagues,
“I am confident that you all will discharge your responsibilities diligently and the profession of Chartered Accountancy will be seen as the ‘Pillars of Economic Governance’.”- Smt. Droupadi Murmu,
Honourable President of India
The future of our profession is an evolving story of innovation, adaptability, and purpose-driven actions. As we envision this future, we must embrace the numerous possibilities of technology while remaining anchored in our commitment to public interest and ethical practices. The transformative power of technology is redefining the landscape of Accounting and Finance.
The audit landscape is also evolving in response to technological advancements. As auditors, we must adapt our methodologies and adopt advanced tools to further enhance the effectiveness of audit procedures. I believe, technology-driven data analytics will enable us to conduct more comprehensive and risk-focused audits, providing greater assurance to stakeholders. From robotic process automation, artificial intelligence to blockchain and data analytics, these advancements will revolutionize how we provide qualitative services to our stakeholders and the public. At the same time, one must remember ‘AI’ is not just about ‘Artificial Intelligence’ but ‘Adaptive Intelligence’ as well. By adapting to changing circumstances, we can remain relevant and lead the charge in driving technological innovations that benefit the users of our services and society at large.
While technology empowers us to be more efficient and effective, we must never lose sight of the human element in our profession. Our stakeholders seek not just data-driven insights but also personalized guidance and understanding. Technology can enhance the quality and speed of our services, but it is our human cognition that will differentiate us from automated processes. Embracing technology enables us to elevate our value proposition, giving us the time and resources to engage more deeply with our clients, and provide customised solutions that align with their goals.
In our pursuit of excellence, we must never lose sight of our primary role as protectors of public interest. With rise of technology, data privacy and Cybersecurity have become paramount concerns. Transparency and ethical practices are the bedrock on which our profession rests. As we onboard this technology-enabled journey, we must reaffirm our commitment to ethics and integrity. Ensuring ethical practices in the development and deployment of technology is crucial to preserving public trust and confidence in our profession.
At the institute level, we have strived to build an ecosystem that enhances Competence, Credence and Compliance by imbibing technology as a part of our learning and working, by introducing technology oriented New Education & Training curriculum to nurture tomorrow’s professionals, enhancing digital competence and readiness of firms through Digital Competency Maturity Model, Digital Audit tools, Unique Document Identification Number (UDIN) to strengthen credibility of statements & documents and recently developed Forensic Accounting & Investigation Standards to strengthen the reporting in the emerging digital realm.
By embracing technology and diversifying our expertise, we can remain relevant and impactful in an increasingly digital world. Upholding public interest, promoting financial literacy and championing sustainability will strengthen our role as growth catalysts and protectors of the public interest. Continuous learning and professional development will be essential to our relevance and resilience.
Let us embark on this journey with courage, adaptability, and a shared commitment to excellence to create a prosperous, ethical and sustainable world.
I am delighted to share some of the recent developments of professional interests are as under:
75th CA Day Celebrations
On 1st July 2023, the momentous occasion of 75th Chartered Accountants’ Day was celebrated with great enthusiasm and zeal across the Country and Globe. On the historic occasion a commemorative Logo and an ICAI Stamp signifying ICAI’s 75 years journey of excellence was unveiled recognizing the remarkable contributions of Chartered Accountants in the economic development of the nation, exemplifying unwavering integrity, competence, and professionalism as Partner in Nation Building.
The esteemed presence and blessings of the Chief Guest Hon’ble President of India, Smt. Droupadi Murmu, and Guest of Honour Shri Rao Inderjit Singh, Hon’ble Minister of State for Corporate Affairs, was the highlight of the event. During the celebration, the new Education and Training Scheme, aligned with the International Standards and National Education Policy 2020, was unveiled. The Hon’ble President of India lauded the collaborative and pivotal role being played by the Chartered Accountants as “Pillars of Economic Governance”. She acknowledged CAs dedication and hard work, and further added, “The journey to becoming a CA is a testament to the dedication and hard work of our exceptional professionals. It further fills me with delight to witness the rising percentage of women pursuing the CA profession”. The Hon’ble Minister acknowledged the remarkable journey of ICAI over the years, emphasizing its contribution to the financial stability and economic development of the country and encouraged the profession to leverage its expertise in meeting the country’s expectations. Detailed report of the CA Day celebrations is published separately in the journal.
ICAI Organizes Nationwide Tax Clinics
Being an important constituent in India’s financial landscape since 1949, ICAI marked its milestone with “75 Years of Trust” by organizing nationwide Tax Clinics on 13th and 14th July, 2023, with publication support from the Income Tax Department. Tax Experts available during the entire day at ICAI Bhawans across India addressed queries and provided guidance on income tax return filing. The Tax Clinics not only assisted taxpayers in understanding intricacies of law but also raised awareness among the public regarding the importance of filing income tax returns and increase tax-payer’s base of the Country. With 168 branches and 5 Regional Councils, ICAI aimed to empower and financially educate the nation, promoting tax compliance among the common man. Over 100 centers received an overwhelming response from taxpayers, and the initiative was widely applauded, reinforcing ICAI’s commitment to building a taxaware and empowered India.
ICAI Global Professional Accountants Convention (GloPAC)
I am happy to inform that ICAI has received tremendous response for GloPAC as close to 2500 delegates have already registered for this mega event. I urge all of you to block your seat so you don’t miss this important event.
The GloPAC is a futuristic global forum propelling ideas, innovation and insights, inspiring accounting and finance professionals worldwide. The convention aspires to forge meaningful connections and opening doors to new horizons towards a brighter future for the profession. It is an opportune moment for one to immerse oneself in the wealth of knowledge, as 100+ globally renowned speakers grace the stage with over 25+ technically enriching sessions and connect, communicate, and collaborate with more than 5000 delegates attending the Convention on November 24-26, 2023, Gandhinagar, India.
In this regard, we also had a meeting with Shri Hasmukh Adhia, Chairman GIFT City and Shri Tapan Ray, Managing Director & Group CEO, GIFT City wherein besides discussing matters of professional interest like exploring ways to enhancing exports of accounting and finance services from India and making India global Outsourcing hub of these services, we discussed their support and association with GloPAC.
As we envision to make India as a Global hub for Accounting and Finance services, the GloPAC is a great opportunity for the Indian Accounting Profession to showcase their prowess to the global audience. I would urge all my professional colleagues to be part of this an invaluable and transformative experience at this epic gathering of accounting and finance professionals.
Commemoration of 164th Income Tax Day
Recently, I had the privilege to participate and address the 164th Income Tax Day Celebrations which were presided over by Smt. Nirmala Sitharaman, Hon’ble Union Finance Minister in the presence of Shri Pankaj Chaudhary Hon’ble Minister of State for Finance, Shri Sanjay Malhotra, Revenue Secretary; Shri Nitin Gupta, Chairman CBDT and Senior officials of Income Tax Department. During the event, role of tax compliance in economic development was emphasised and also the significant role of Chartered Accountants in upholding the integrity of our nation’s financial system and facilitating seamless tax compliance. On the occasion, I applauded the role of my fellow CAs and Income Tax Department for their pivotal role in ensuring a fair and efficient tax regime. I also urged my fellow citizens to be more tax compliant and become a contributor in nation building. Together, we shall pave the way for a stronger and more prosperous India.
Stakeholders’ Engagement
Meeting with IFRS Foundation Leadership
I along with Chairman, ASB had a virtual meeting with IFRS Foundation and IASB leadership on July 18, 2023. During the meeting, we discussed several significant matters, including the implementation of Ind AS 117-Insurance Contracts, the status of carve-outs under Ind AS, the implementation of Ind AS for Banks and ways to enhance ICAI’s participation in the outreach activities of the IFRS Foundation.
Interactive Meet with Overseas Chapters & Representative Offices
In the pursuit of a strong global brand, the Institute is actively engaging with its Overseas Chapters and Representative Offices. I along with Vice President CA. Ranjeet Kumar Agarwal, had an interactive meeting with Overseas Chapters and Representative Offices aiming to position Indian CAs as leaders on the global stage. Discussions were held on new Scheme of Education and Training and key global events like “RESOLVE-2023” in Singapore and ‘GloPAC’ in Gandhinagar, India were highlighted. The focus is on establishing India as a Global Finance and Accounting hub and its professionals as the best worldwide through an integrated collaborative strategy.
Separately, both of us also addressed the members of New York Chapter of ICAI on July 22, 2023 and besides updating about various initiatives of ICAI encouraged them to attend ‘GloPAC’ in large numbers.
SAFA Board Meeting
I along with ICAI Vice President CA. Ranjeet Kumar Agarwal attended the 79th SAFA Board meeting held virtually on June 24, 2023. During the meeting various important issues were delved upon for the development of the profession in the region. In the meeting it was decided to admit CA Maldives as Full member of SAFA w.e.f. July 1, 2023.
Stakeholders Consultation Meetings on MCA 21 V3
MCA21 V3 marks a transformative shift in digital corporate governance, promoting efficient compliance and transparent access to corporate information. ICAI through its Corporate Laws & Corporate Governance Committee played a crucial role in supporting the initiative by organizing Stakeholders’ consultation meetings in various cities like Delhi, Chennai, Hyderabad, Kolkata, Guwahati, Ahmedabad, and Mumbai. These meetings facilitated open dialogue, allowing stakeholders to address challenges and find solutions for the seamless implementation of MCA 21 V3. The Ministry expressed deep appreciation for ICAI’s valuable assistance in this significant government initiative.
MoU with Department of State Taxes, Goa
It gives me immense pleasure to inform you that the Institute through its GST and Indirect Taxes Committee entered into a Memorandum of Understanding (MoU) with Department of State Taxes, Goa on 13th July, 2023 in the august presence of Hon’ble Chief Minister of Goa Dr. Pramod P. Sawant, and Hon’ble Minister-Govt. of Goa Shri Mauvin Godinho. Myself, ICAI Vice President CA. Ranjeet Kumar Agarwal, and ICAI Central Council members CA. Sushil Kumar Goyal (Chairman, GST and Indirect Taxes Committee), CA. Mangesh Kinare and CA. Durgesh Kabra were also present on the occasion. The objective of the MoU is to extend technical co-operation in capacity building, research, assistance in policy making, consulting etc. This will facilitate to impart training on GST to officers of Department of State Taxes, Goa through Capacity Building Programmes on a regular basis.
Agreement with Finance Department, Government of Uttarakhand
In another heartening development, ICAI through, Committee on Public and Government Financial Management (CPGFM) has entered into an agreement with the Project Management Unit – Uttarakhand Project Management Strengthening (PMU – UKPFMS) working under the aegis of the Finance Department, Government of Uttarakhand to impart training to newly recruited and existing account staff of Urban Local Bodies of Uttarakhand on Accrual Based Double Entry Accounting System and Uttarakhand Municipal Accounting Manual (UMAM), 2021 jointly with Urban Development Directorate (UDD). The agreement was exchanged in the presence of Shri Prem Chand Aggarwal, Hon’ble Minister, Urban Development & Finance, Government of Uttarakhand, ICAI Vice President CA. Ranjeet Kumar Agarwal, ICAI Central Council members CA. Kemisha Soni & CA. Prasanna Kumar D., Mr. Navneet Pande, Director, Urban Development Directorate, Government of Uttarakhand and other senior officials from UDD, UKPFMS & ICAI.
Deferment of Second phase of Peer Review Mandate
The Institute decided to mandate the Peer Review process for coverage of more firms under Peer Review process. In view of requests being received from the Practice Units for some additional time to get themselves Peer Reviewed, the Council decided to further defer the applicability of the 2nd phase of the Peer Review mandate. Accordingly, the second phase of the mandate is now applicable w.e.f. April 1, 2024, for the respective category of practice units. Further details are available on ICAI website.
Accordingly, Practice Units which accept Statutory audits on or before March 31, 2024 should ensure that they have a Peer Review Certificate at the time of signing.
Nurturing Excellence with Research
Our Profession has built its legacy of excellence on power of knowledge. As an institution it is our consistent endeavour to promote research as it ignites new ideas and motivates to come up with innovative solutions and do things excellently, pushing us towards a brighter future. At ICAI, research and development initiatives have always been appreciated for creating a growth-driven approach for stakeholders in various aspects.
- ICAI Doctoral Scholarship Scheme 2023
The Institute, under the aegis of its Research Committee, has launched the ICAI Doctoral Scholarship Scheme 2023. This is an opportunity for our members aspiring to pursue a Ph.D. that contributes to the professional growth. The scheme aims to cultivate research skills and inspire more Chartered Accountants to delve into research and innovation. The last date to apply under the scheme is September 30, 2023.
- ICAI Research Project Scheme 2023
The Institute, also took the initiative to promote innovation and creativity through the ICAI Research Project Scheme, which aims to support researchers or scholars who wish to undertake research studies on contemporary topics in the field of accounting and other allied areas by funding the research projects. In furtherance of these efforts, the ICAI Research Committee is delighted to introduce the ICAI Research Project Scheme 2023, which is open all year round.
I am sure that these schemes will serve as a unifying force, fostering research for the betterment of the profession.
Conclusion
As Chartered Accountants, we stand on the threshold of a digital revolution, where the mastery of technology will elevate our ability to serve our clients and the nation. Continuous learning and upskilling are the pillars that will bolster our success in this rapidly evolving technological landscape. Our dedication to staying abreast of the latest tools, trends, and regulations will fortify our position as leaders in the financial world, ensuring that we remain agile and adaptable to the changing demands of the digital era.
On this momentous occasion of Independence Day on 15th August 2023, let’s come together and envision a futuristic India where prosperity, innovation, and inclusivity reign supreme. As partners in nation-building, let’s play a vital role in shaping the economic landscape, fostering financial growth, and ensuring transparency in business practices. With unwavering dedication and expertise, envision a New India characterized by robust financial systems, ethical governance, and sustainable development. As growth engines of progress, let’s aspire to contribute to a dynamic and self-reliant nation, driven by a spirit of unity. Let’s work together work for a brighter tomorrow, fueling the vision of an empowered and progressive India on this Independence Day.
Happy Independence Day!!
Jai Hind, Jai ICAI.CA. Aniket Sunil Talati
President, ICAI
Ahmedabad, 28th July, 2023
